For Bojangles restaurants, what is the general basis for contingent rent in certain lease agreements?

According to Bojangles's 2025 Franchise Disclosure Document, some of the company's lease agreements include contingent rent. This means that the rent paid can fluctuate based on the restaurant's sales performance. Specifically, these agreements stipulate that contingent rent is based on the excess of a percentage of annual sales over a predetermined minimum annual rent.

In practical terms, if a Bojangles restaurant exceeds a certain sales threshold within a year, it will pay additional rent calculated as a percentage of that excess. This arrangement aligns the landlord's financial interest with the franchisee's success, as the landlord benefits directly from higher sales volumes at the restaurant. It also provides some flexibility for the franchisee, as the rent is partially tied to their revenue.

Additionally, the FDD states that annual rents for some other Bojangles restaurants are based on a percentage of restaurant revenue but without a stated minimum. This alternative arrangement provides even greater flexibility, as the rent directly corresponds to the revenue generated, without any fixed base amount. A prospective franchisee should inquire about the specific lease terms available for their location to understand whether the lease includes contingent rent based on sales exceeding a minimum, or a straight percentage of revenue.